A Family Investment Company (FIC) is a well-established tool for wealth management. It enables families to pool resources and hold a wide-ranging portfolio of assets, while benefiting from control, tax efficiencies, and privacy.
One of the attractions of a FIC is its ability to reconcile two objectives that are often in tension: the retention of influence by founders and the gradual transition to the next generation. Achieving this balance requires technical advice at inception and disciplined governance throughout its lifecycle.
By issuing different classes of shares, families can tailor voting rights and income entitlements to suit long-term objectives. This allows founders or senior family members to retain oversight while gradually providing the next generation with exposure to learning opportunities and a deeper understanding of the rationale behind key investment decisions. Ownership can evolve incrementally in line with maturity and responsibility, ensuring continuity of strategy and stewardship.
The Isle of Man has emerged as a preferred jurisdiction for establishing FICs. As an award-winning international finance centre, it offers enhanced privacy, as companies are not required to place financial statements on a public register. In addition, its company law framework is particularly well suited to multi-class share structures.
For more information click on the Isle of Man Investment Company brochure below. In addition, we have a number of articles that have been written in response to specific questions.
